FIN1101 Introduction to Financial Management

FIN	1101	75128	1, 2008	ONC	Introduction to Financial Management	1.00	Springfield
Subject	Cat-nbr	Class	Term	Mode	Description	Units	Campus

Academic group:	FOBUS
Academic org:	FOB008
Student contribution band:	3A
ASCED code:	081101

Staffing
Requisites
Other requisites
Synopsis
Objectives
Topics
Texts
Reference materials
Student workload
Assessment details
Important assessment information
Assessment notes
Production date
PDF version

STAFFING

Examiner: Peter Phillips
Moderator: Johanna Makin

REQUISITES

Co-requisite: ACC1101

OTHER REQUISITES

Students are required to have access to a personal computer, e-mail capabilities and Internet access to USQConnect. Current details of computer requirements can be found at http://www.usq.edu.au/business/aboutfob.htm

SYNOPSIS

This course will introduce students to the basic concepts and tools of financial management. The focus of the course is decision making in a financial context. It therefore examines the techniques that are used in businesses to make decisions that are consistent with the efforts to increase the wealth of the owners of the business. The topics covered include the valuation of future cash flows, the valuation of stocks and bonds, capital budgeting, risk and return and long term financing.

OBJECTIVES

The course objectives define the student learning outcomes for a course. The assessment item/s that may be used to assess student achievement of an objective is/are shown in parentheses after each objective. On successful completion of this course, students should be able to:

demonstrate an understanding of financial management decisions
apply financial mathematics to the solution of business problems and the valuation of cash flows and securities
demonstrate an understanding of capital budgeting problems and apply the appropriate techniques for solving them
explain the relationship between risk and return and calculate measures of each of these
calculate a firm's cost of capital
demonstrate an understanding of the implications of capital structure decisions
discuss the dividend policies adopted by Australian firms
identify and describe the main sources of short and long-term financing.

TOPICS

	Description	Weighting (%)
1.	Introduction to financial decision making	3.00
2.	Application of financial mathematics	12.00
3.	Capital budgeting	15.00
4.	Risk and return	15.00
5.	Cost of capital	15.00
6.	Capital structure decisions	15.00
7.	Dividend policies	15.00
8.	Short-term and long-term finance	10.00

TEXT and MATERIALS required to be PURCHASED or accessed

ALL textbooks and materials are available for purchase from USQ BOOKSHOP (unless otherwise stated). Orders may be placed via secure internet, free fax 1800642453, phone 07 46312742 (within Australia), or mail. Overseas students should fax +61 7 46311743, or phone +61 7 46312742. For costs, further details, and internet ordering, use the 'Textbook Search' facility at http://bookshop.usq.edu.au click 'Semester', then enter your 'Course Code' (no spaces).

FIN1101 study package available from the USQ Bookshop.

Ross, Trayler, Bird, Westerfield & Jordan 2008, Essentials of corporate finance, McGraw Hill, North Ryde, New South Wales.
(Australian edition)

REFERENCE MATERIALS

Reference materials are materials that, if accessed by students, may improve their knowledge and understanding of the material in the course and enrich their learning experience.

It is not necessary to obtain the following titles, but if available, they will provide supplementary material to the set text.

Bishop, SR, Crapp, HR, Faff, RW & Twite, GJ 2003, Corporate finance, 5th edn, Prentice Hall, Frenchs Forest, New South Wales.

Brealey, R, Myers, S, Partington, G & Robinson, D 2000, Principles of corporate finance, McGraw-Hill, Sydney, New South Wales.
(Australian edition)

Frino, A, Kelly, S, Comerton-Forde, C, Cusack, A & Wilson, K 2006, Introduction to corporate finance, 3rd edn, Pearson Education, Frenchs Forest, New South Wales.

Peirson, G, Brown, R, Easton, S, Howard, P & Pinder, S 2005, Business finance, 9th edn, McGraw-Hill, North Ryde, New South Wales.

Petty, JW, Peacock, R, Martin, P, Burrow, M, Keown, A, Scott Jr, DF & Martin, JD 2006, Financial management, 4th edn, Pearson Education, Frenchs Forest, New South Wales.

Ross, S, Thompson, SC, Christensen, MJ, Westerfield, RW & Jordan, BD 2004, Fundamentals of corporate finance, 3rd edn, McGraw-Hill, Sydney, New South Wales.
(Australian edition)

STUDENT WORKLOAD REQUIREMENTS

ACTIVITY	HOURS
Assessment	20.00
Lectures	24.00
Private Study	97.00
Tutorials	24.00

ASSESSMENT DETAILS

Description	Marks out of	Wtg(%)	Due date	Notes
SHORT ANSWER PROBLEM SET 1	15.00	15.00	04 Apr 2008
ASSIGNMENT	100.00	20.00	09 May 2008
SHORT ANSWER PROBLEM SET 2	100.00	15.00	30 May 2008
2 HOUR EXAMINATION	100.00	50.00	END S1	(see note 1)

NOTES

1.: The examination is scheduled to be held in the end-of-semester examination period. Students will be advised of the official examination date after the timetable has been finalised.

IMPORTANT ASSESSMENT INFORMATION

Attendance requirements:
It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.
Requirements for students to complete each assessment item satisfactorily:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.)
Penalties for late submission of required work:
If students submit assignments after the due date without prior approval of the examiner, then a penalty of 5% of the total marks gained by the student for the assignment may apply for each working day late up to ten working days at which time a mark of zero may be recorded.
Requirements for student to be awarded a passing grade in the course:
To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course.
Examination information:
This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the restricted examination for this course are: writing materials (non-electronic and free from material which could give the student an unfair advantage in the examination); calculators which cannot hold textual information (students must indicate on their examination paper the make and model of any calculator(s) they use during the examination). It is essential that students attempting this course have a quiet battery-operated non-programmable calculator, such as the Casio fx-82TL scientific calculator, or an equivalent. Students are not permitted to take mobile telephones, pagers or other electronic means of communication into the examination room.
Examination period when Deferred/Supplementary examinations will be held:
Any Deferred or Supplementary examinations for this course will be held during the next examination period.
University Regulations:
Students should read USQ Regulations 5.1 Definitions, 5.6 Assessment, and 5.10 Student Academic Misconduct for further information and to avoid actions which might contravene university regulations. These regulations can be found at http://www.usq.edu.au/corporateservices/calendar/part5.htm. Students should also read the Faculty of Business Policies and Procedures which can be found at http://www.usq.edu.au/business/aboutfob.htm.

ASSESSMENT NOTES

1.	Assignments: (i) Students must retain a copy of each item submitted for assessment. This must be produced within 24 hours if required by the examiner. (ii) In accordance with university policy, the examiner may grant an extension of the due date of an assignment in extenuating circumstances. All applications for assignment extensions must be accompanied by appropriate supporting documentation. Under no circumstances will assignments submitted more than two calendar weeks after the due date be accepted. (iii) Assignments are to be submitted with the appropriate assignment cover. (iv) The examiner will not accept submission of assignments by facsimile.
2.	Course weightings: Course weightings of topics should not be interpreted as applying to the number of marks allocated to questions testing those topics in an examination paper. The examination may test material already tested in assignments.
3.	Dishonest actions: (i) Any student who is alleged to have performed a dishonest action relating to any assessment in the course will have a course of action taken against him/her as outlined in the academic regulations. (ii) Pieces of assessment should be the work of individual students. Joint pieces of assessment are not permitted unless written approval has been obtained from the examiner. (iii) Dishonest action in relation to assessment includes: copying or attempting to copy the work of others; use of or attempting to use information prohibited from use in that form of assessment; submitting the work of another as your own; consciously committing acts of plagiarism, that is, taking and using another's thoughts or writings as one's own with intent to deceive, which occurs when paragraphs, sentences, a single sentence or significant parts of a sentence which are copied directly, are not enclosed in quotation marks and appropriately footnoted or referenced in the text; direct quotations are not used, but text is paraphrased or summarised, and the source of the material is not acknowledged by reference in the text.
4.	Deferred work: Students who, for medical, family/personal, or employment-related reasons, are unable to complete an assignment or to sit for an examination at the scheduled time may apply to defer an assessment in a course. Such a request must be accompanied by appropriate supporting documentation. One of the following temporary grades may be awarded: IDS (Incomplete - Deferred Examination); IDM (Incomplete Deferred Make-up); IDB (Incomplete - Both Deferred Examination and Deferred Make-up).

This version produced 27 May 2008.